Concern at pension rush

The Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill was recently amended so people who have applied to transfer their pensions before April 1 are eligible for the 15% amnesty tax rate. 

Tom Gilbert, of Pension Transfers, said in many cases people would be foolish not to do it, if their intention was to live and retire in New Zealand.  He had done some calculations in which people were $60,000 better off in tax terms with the 15% amnesty.

But Dai Eveleigh, head of investments and UK pensions at advisory firm First Capital Financial Services, said not everyone would benefit from the amnesty.

He said some investors were getting incorrect advice that could leave them worse off, often from financial advisers and accountants who were not specialists in the area.